"Biosite (BSTE NASDAQ) is a research-based diagnostics company
dedicated to the development of novel protein-based tests that improve a
physician's ability to diagnose debilitating and life-threatening diseases and
condition, such as cardiac disease and drug abuse. The company develops and
markets rapid, point-of-care diagnostic tests used in hospital labs, emergency
rooms, and health clinics. The firm's Triage Drugs of Abuse panel was introduced
in 1992 and is now used in nearly 50% of US acute care hospitals. Sales of
this test represent 35% of Biosite's revenues.

"In 1999, the Triage Cardiac panel was
introduced and uses a whole-blood sample to detect heart attacks. Because the
test only takes 20 minutes to complete, it helps physicians make earlier and
better treatment decisions after a heart attack has occurred. This panel
represents about 20% of revenues. The Triage BNP test was introduced in 2000 and
now represents 35% of sales. This test was the first blood test approved for the
diagnosis of congestive heart failure. As of 2003, the Medicare reimbursement
rate for the BNP test for congestive heart failure was increased from $18 to
$47. This could result in higher test growth by making the test more cost
effective for hospitals to administer.

"For the fiscal quarter
ended last September, revenues increased by 70% with net income of $0.24 a
share compared to $0.18 the prior quarter. Technically, the stock high a high last May of
$33.50. After a dip down to $17.32 in early August, the stock has rallied and
broken through the $35 level. The company receives a B rating for accumulation
and distribution, and has a relative strength ranking of 96."